Operating expenses jumped 27% to Rs 126.74 crore, causing2% decline in the operating profit to Rs 1086.28 crore. Depreciation jumped 19% to Rs 12.94 crore from Rs 3.18 crore.However, the provisions dipped to Rs 56.45 crore in Q1FY2021 from Rs 253.33 crore in Q1FY2020. PBT moved up 21% to Rs 826.72 crore. An effective tax rate dipped to 19.67% in Q1FY2021 from 27.38% in Q1FY2020. The net profit jumped 34% to Rs 817.48 crore in Q1FY2021.

Business updates

In the quarter ended June 2020, total disbursements dipped65% to Rs 3560 crore from Rs 10261 crore in Q1FY2020. Out of that, disbursements in the individual home loan segment dipped61% to Rs 3034 crore, whereas disbursements in project loans dipped81% to Rs 159 crore and other retail loans by76% to Rs 367 crore in Q1FY2021

The total loan portfolio rose at slower pace of 6% to Rs 209817 crore as against Rs 194646 crore. The Individual loan portfolio stood at Rs 195176 crore as against Rs 184155 crore, showcasing a growth of 6%. Developer loan portfolio rose 8% to Rs 14641 crore end June 2020 as against Rs 13614 crore end June 2019.The

Loan Mix is - retail loans - 76.8%, developers loans - 7.0% and retail LAP/LRD/etc - 16.2%.

Net Interest margins improved to 2.32% in Q1FY2021 as against 2.41% in Q1FY2020. The weighted average cost of funds eased to 7.87% in Q1FY2021 from 8.08% a quarter ago and 8.30% a year ago.The weighted yield on advances rose to 10.15% in Q1FY2021 from 10.02% a quarter ago, while eased from 10.24% a year ago.

The asset quality of the company was stable in Q1FY2021. The gross stage 3 (GNPA) exposure at default was flat at 2.83% end June 2020 from 2.83% a quarter ago, while increased from 1.40% a year ago. The company has scaled up provisions to Rs 2668.63 crore end June 2020 from Rs 2612.00 crore a quarter ago and Rs 1756.70 crore a year ago.

In accordance with RBI directions, the Company offered moratorium to its customers for the period 1 March 2020 to 31 May 2020 under moratorium 1 and pursuant to RBI direction of 23 May 2020, under moratorium II an extension of 3 months from 1 June 2020 to 31 August 2020. Individual Home Loans under moratorium accounted for 16% of the Home Loans portfolio as on 30 June 2020. Approximately 25% of the Company's total loans under management is in moratorium as of 30 June 2020.

Book value of the company stood at Rs 376.7 per share and adjusted book value (net of net stage 3 assets) stood at Rs 311.9 per share end June 2020.

Financial Performance for FY2020

LIC Housing Finance reported 10% growth in net interest income to Rs 4821.49 crore for FY2020. Other income dipped 41% to Rs 64.41 crore, while the total income increased 9% to Rs 4885.90 crore. Operating expense declined 16% to Rs 616.11 crore. The OP increased 14% to Rs 4269.79 crore. After providing deprecation of Rs 48.07 crore and provisions of Rs 952.73 crore, PBT declined 3% to Rs 3268.99 crore. After providing total tax of Rs 867.15 crore, PAT declined 1% to Rs 2401.84 crore in FY2020.